Recently, while browsing through the foreclosure news on Google, it is apparent that there are many more foreclosure scams now that the housing market has slowed. Nearly half of the most recent news stories relating to foreclosure are focused on helping homeowners avoid these scams. It is unfortunate that so, so many people need to be informed over and over again not to make some of the most simple mistakes regarding their most important asset: their homes.
Some of the more simple scams involve companies offering homeowners "fast cash" or "equity funding." In reality, though, the paperwork for these dubious loans involves the foreclosure victims signing the deed to their homes over to the foreclosure scam company for a nominal price or "loan." This is probably the lowest form of criminal, taking advantage of people's ignorance and overwhelming desire to stop foreclosure any way possible. Obviously, these people belong in jail.
There are also a rising number of "foreclosure rescue services" coming under the spotlight of national news agencies. These criminals also give their victims paperwork that is used to trick them into giving up their rights to the home. The scammer can then record the new deed, showing them as the owner of the property, and evict the former owners, who are still in foreclosure. Next, the scammer rents out the property until the home goes all the way through foreclosure, collecting rental income and being directly responsible for the eviction of not just one, but two families during the course of the foreclosure. Even more than the group of scammers mentioned above, these people need to pay for their criminal acts against innocent homeowners.
The sheer volume of stories like these is a sad commentary on the current state of financial education regarding owning a home. If you find yourself facing foreclosure or becoming late in payments, your best defense should be to gain as much knowledge about foreclosure as you can. Remaining ignorant of the way foreclosure works is simply negligent.
In other words, you can not reasonably expect to stop foreclosure unless you understand a reasonable amount of information about the foreclosure process. If you remain in the dark, you will find yourself the unwilling prey of a foreclosure scam, possibly being tricked into sending thousands of dollars for foreclosure help, or even signing away your home and finding yourself on the streets in a matter of days.
Don't become one of the many victims of these and other foreclosure scams. Read what you are signing, examine your options, never sign over the deed to your house, and make sure the deal you are getting to stop foreclosure is in your best interests
